PFA OUTCOME FOR for the sale and transfer of a part of the Company s business including its granulated single super phosphate plant and certain related assets situated at Mahad, Maharashtra ( Business ) for a lump sum consideration aggregating to INR 72,75,00,000 (Indian Rupees Seventy Two Crores and Seventy Five Lakhs) to its subsidiary, Mangalore Chemicals & Fertilizers Limited ( MCFL ), subject to the approval of the shareholders.
ZUARI · price
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Zuari Agro Chemicals Limited (ZACL) board has approved selling its Granulated Single Super Phosphate plant and related assets at Mahad, Maharashtra to its listed subsidiary Mangalore Chemicals & Fertilizers Limited (MCFL) for a lump sum of Rs 72.75 crore on a slump sale basis. The Mahad plant contributed Rs 47.80 crore in turnover, which is 100% of ZACL's total turnover for FY ending March 2025, and its net book value of Rs 51.10 crore represents 38% of the company's net worth. The transaction is a related party deal done at arm's length and is subject to shareholder approval, with completion expected in three months. The company said the sale will provide liquidity and help repay certain liabilities.
For shareholders, this is a major event since the Mahad plant is ZACL's only revenue-generating unit (100% of turnover), effectively making the company a shell post-sale and shifting the business value into MCFL, where ZACL is a shareholder. The sale price of Rs 72.75 crore is above the net book value of Rs 51.10 crore, but the long-term value transfer to MCFL could prompt investor scrutiny on pricing and shareholder approval outcome.